India Set to Become a Major Arms Exporter with Defence Budget Soaring by 2047

National News: India's defense sector is moving towards unprecedented growth in the coming years. According to a joint report released by the Confederation of Indian Industry (CII) and KPMG, India's defense budget can increase to about ₹ 31.7 lakh crore by the year 2047. In 2024-25, this budget has been set ₹ 6.8 lakh crore, which means that it is expected to increase by about five times in the next two decades.

Defense production will increase rapidly

Along with the defense budget, a rapid increase in domestic defense production has also been estimated. In the year 2024-25, its level was ₹ 1.6 lakh crore, which can reach ₹ 8.8 lakh crore by 2047. The government's 'Make in India' and self-reliant India policies are being considered as a big inspiring power behind this increase.

Defense exports will get new flight

India is now rapidly moving towards becoming an exporting nation, not only a consumer of defense equipment. Currently, the level of defense exports is around ₹ 30,000 crore, which has been targeted to be taken up to ₹ 2.8 lakh crore by 2047. This shows that India is preparing to take its participation in the global defense market to new heights.

Emphasis on capital expenditure and research will increase

According to the report, a large part of the defense budget will be focused on Capital Expected. The capital expenditure in 2024-25 was 27% of the budget, which can reach 40% by 2047. Its main objective is to promote investment in defense infrastructure, state-of-the-art techniques, and arms systems.

Defense sector contribution will increase in GDP

The report also estimated that the defense sector's contribution to India's GDP can increase from 2% to 4-5% by 2047. This will make the role of the defense industry important not only in the field of security but also in economic development.

Challenges also present in the path of self-sufficiency

However, the report has also attracted attention to some important challenges. India still depends on imports for some important defense techniques. In addition, the lack of efficient human resources and the limited pace of innovation can also become a hindrance to development.

The report laid special emphasis on strengthening public-private partnerships and making domestic production self-sufficient.

India may be among the leading defense-productive & exporting nations 

By 2047, India's defense budget, production, exports, and global competition can touch new heights on all fronts. But this will require policy stability, technological innovation, skill development, and strategic investment. If these obstacles are exceeded, India may join the world's leading defense productive and exporting nations.